Credit Profile

Oct 26, 2011 (LBO) – Fitch Ratings Lanka has confirmed Pan Asia Banking Corporation’s (PABC) national long-term rating at ‘BBB(lka)’ with a stable outlook. PABC is a licensed commercial bank (LCB), 41% owned by a high net-worth businessman Mr. K.D.D. Perera and related parties. It accounted for 1.1% of LCB sector assets at end-2010 (2009: 0.9%), and had 56 branches at end-September 2011 (end-2009: 35).

Its proposed subordinated debentures of up to two billion rupees have been confirmed at ‘BBB-(lka)’, the rating agency said in a statement.

“PABC’s ratings reflect continued improvements in its credit profile relative to local peers, particularly asset quality and capitalisation, supported by structural changes within the bank over 2009-2010,” it said.

“The ratings also reflect the bank’s small but steadily growing franchise and market share supported by recent branch expansion.”

The full ratings report follows:

Fitch Ratings Lanka has affirmed Pan Asia Banking Corporation PLC’s (PABC) National Long-Term rating at ‘BBB(lka)’ with a Stable Outlook. Its proposed subordinated debentures of up to LKR2.0bn have been affirmed at ‘BBB-(lka)’